RO Jewels SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 12 Mar 2020 – 17 Mar 2020
- Listing date
- 25 Mar 2020
- Face value
- ₹10 per share
- Issue price
- ₹36 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹4.91 Cr
- Market cap at offer price
- ₹10.20 Cr
- Promoter holding
- 87.38% → 45.26% pre-issue → post-issue
- ISIN
- INE0BDU01010
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- First Overseas Capital Ltd.
- Registered office
- 202, Shri Virkala Complex, M.G. Haveli R, Manekchowk Co. Op Bank, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 69,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹36
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,08,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,16,000 |
| S-HNI (max) | 9 | 27,000 | ₹9,72,000 |
| B-HNI (min) | 10 | 30,000 | ₹10,80,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹10.20 Cr |
About RO Jewels SME
RO Jewels Limited was incorporated on December 11, 2018 as a private limited company and converted to a public company on October 1, 2019. The company acquired the entire business of M/s Ravi Ornaments, a proprietorship concern, through a Business Succession Agreement dated December 18, 2019, effective from May 31, 2019. The company is engaged in the wholesale business of gold and silver chains, operating primarily through its showroom in Manek Chowk, Ahmedabad and through direct marketing to jewellery stores across Gujarat. The company procures gold and silver mainly through the bullion market and local Ahmedabad markets, and sources ready-made chains and jewellery from manufacturers and wholesalers in Ahmedabad and Mumbai. These products are sold through B2B marketing and direct/outbound strategies. The company's portfolio includes traditional, Indo-western, and modern chain and jewellery designs with BIS hallmark certification. The promoters collectively have approximately 40 years of experience in the gems and jewellery industry.
Company Analysis
from RHPRO Jewels Limited is a wholesale gold and silver jewellery distributor operating in Gujarat, India, engaged in the wholesale business of gold and silver chains, bracelets, bars and necklaces.
RO Jewels Limited was incorporated on December 11, 2018 as a private limited company and converted to a public company on October 1, 2019. The company acquired the entire business of M/s Ravi Ornaments, a proprietorship concern, through a Business Succession Agreement dated December 18, 2019, effective from May 31, 2019. The company is engaged in the wholesale business of gold and silver chains, operating primarily through its showroom in Manek Chowk, Ahmedabad and through direct marketing to jewellery stores across Gujarat. The company procures gold and silver mainly through the bullion market and local Ahmedabad markets, and sources ready-made chains and jewellery from manufacturers and wholesalers in Ahmedabad and Mumbai. These products are sold through B2B marketing and direct/outbound strategies. The company's portfolio includes traditional, Indo-western, and modern chain and jewellery designs with BIS hallmark certification. The promoters collectively have approximately 40 years of experience in the gems and jewellery industry.
Objects of the Issue
- Additional Working Capital ₹460.00 Lakhs p.16
- General Corporate Expenses ₹6.40 Lakhs p.16
- Additional Working Capital ₹460.00 Lakhs (93.61% of Gross Proceeds) p.63
- General Corporate Expenses ₹6.40 Lakhs (1.30% of Gross Proceeds) p.63
- To meet the expenses of the Issue ₹25.00 Lakhs (5.09% of Gross Proceeds) p.63
- Not specified in this part of the document
Issue Structure
- Total Issue
- ₹491.40 Lakhs
- Fresh Issue
- 13,65,000 equity shares of face value of ₹10 each at ₹36 per share aggregating to ₹491.40 Lakhs
- Price Band
- ₹36 per equity share (including a share premium of ₹26 per equity share)
- Face Value
- ₹10 per equity share
Business Model
The company operates a wholesale distribution model for gold and silver jewellery. It procures finished chains and other jewellery from manufacturers and wholesalers and sells them to jewellery retailers in Gujarat. Revenue is generated through the sale of gold-based chains, bracelets, gold/silver bars and necklaces. The company sources products at pre-agreed rates or flexible spot-rates linked to prevailing market benchmarks, without long-term supplier agreements.
Business Segments
SWOT Analysis
- • Approximately 40 years of combined promoter experience in gems and jewellery industry(p.15)
- • BIS hallmarked jewellery portfolio providing consumer confidence on purity(p.15)
- • Diversified portfolio catering to varied customer tastes and market trends(p.15)
- • Multi-channel distribution through B2B marketing and direct/outbound sales strategy(p.15)
- • Established brand 'Ravi Ornaments' with local market presence(p.80)
- • Long-term strong relationships with key suppliers enabling bulk procurement leverage(p.80)
- • Smooth credit cycle with debtors and creditors providing payment flexibility(p.80)
- • Experienced management with approximately 40 years combined industry experience(p.79)
- • BIS hallmarked inventory providing consumer confidence on purity(p.79)
- • Diversified product portfolio catering to varied customer preferences and trends(p.79)
- • 40+ years combined promoter experience in gems and jewellery(p.124)
- • Diversified product portfolio catering to varied customer preferences(p.139)
- • BIS hallmarked jewellery enhancing consumer confidence(p.139)
- • No outstanding debt or borrowings(p.147)
- • No litigation or regulatory action against company or promoters(p.148)
- • Lack of trademark registration for company name and logo(p.22)
- • No long-term customer contracts; dependence on few major customers(p.24)
- • Significant working capital requirements with inventory and receivables management risks(p.24)
- • Negative cash flows from operations in recent periods(p.26)
- • No non-disclosure or confidentiality agreements with employees and job workers(p.29)
- • Jewellery designs not registered under Designs Act 2000; susceptible to copying(p.23)
- • Leased premises dependency with promoter as landlord(p.22)
- • Limited geographic presence - sales concentrated only in Gujarat(p.79)
- • Very small employee base of only 9 people limiting operational capacity(p.81)
- • Very recent company incorporation with limited operating history(p.89)
- • No registered intellectual property or trademark protection for brand(p.82)
- • No strategic collaborations or partnerships(p.91)
- • Business succession agreement effective from May 2019 only recently formalized in December 2019(p.79)
- • Significant dependence on top 5 customers representing 94% of revenue(p.145)
- • High inventory holding relative to sales(p.133)
- • Very limited scale with revenues of Rs. 424.34 lakhs for FY 2018-19(p.142)
- • Geographic concentration of operations limited to Gujarat and Ahmedabad(p.139)
- • Potential conflict of interest with promoter group entities engaged in similar business(p.111)
- • India's significant role in global gems and jewellery sector with strong export orientation(p.15)
- • Government focus on gems and jewellery as priority sector for export promotion(p.15)
- • 100% FDI allowed by Government through automatic route(p.15)
- • Significant employment growth expected in sector from 4.64 million to 8.23 million by 2022(p.15)
- • Expected growth in jewellery purchases during festive and wedding seasons(p.24)
- • Expand market share in growing domestic gems and jewellery market(p.80)
- • Grow sales through regulated business arrangements with other retailers(p.80)
- • Increase product visibility through branding, advertising and marketing(p.80)
- • Participate in trade fairs and exhibitions for market expansion(p.80)
- • Leverage government initiatives promoting gems and jewellery sector(p.87)
- • Benefit from sector growth with market expected to reach US$ 100 billion by 2025(p.73)
- • Capitalize on increased middle class and high net worth population in India(p.76)
- • Expansion of geographical and customer presence beyond Gujarat(p.124)
- • Launch of newer products and portfolio expansion(p.141)
- • Expansion of retail network(p.141)
- • Growth potential linked to regional and national economic expansion(p.145)
- • High volatility in gold and silver prices linked to international commodity indices(p.24)
- • Highly fragmented and competitive jewellery sector with unorganized competitors(p.24)
- • Dependence on suppliers without long-term agreements; supply chain disruption risk(p.25)
- • Discretionary nature of jewellery purchases vulnerable to economic downturns(p.24)
- • Regulatory and policy changes could adversely affect operations and tax incentives(p.28)
- • Natural calamities and force majeure events could disrupt operations(p.35)
- • Terrorist attacks and civil unrest could adversely affect consumer confidence and markets(p.36)
- • Instability in Indian financial markets influenced by global economic conditions(p.34)
- • Highly competitive jewellery retailing with national and unorganized players(p.80)
- • Risk of gold price volatility and monsoon impact on demand(p.73)
- • Dependence on bullion market for procurement of raw materials(p.79)
- • Concentration risk with heavy dependence on local Ahmedabad market(p.79)
- • Regulatory and compliance requirements for hallmarking and BIS standards(p.77)
- • Fluctuations in gold and silver prices affecting cost and margins(p.140)
- • Intense local and regional competition in jewellery sector(p.141)
- • Dependence on attracting and retaining distributors and wholesalers(p.141)
- • Economic and fiscal policy changes affecting consumer demand(p.140)
- • Regulatory approvals and licensing requirements for business operations(p.141)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Bharat Rasiklal Shah | Promoter | 74.75% | 38.72% |
| Mrs. Pravinaben Shah | Promoter | 0.24% | 0.12% |
| Mr. Shubham Bharatbhai Shah | Promoter | 12.39% | 6.42% |
| Mr. Bharat Rasiklal Shah | Promoter | 74.75% | 38.72% |
| Mrs. Pravinaben Shah | Promoter | 0.24% | 0.12% |
| Mr. Shubham Bharatbhai Shah | Promoter | 12.39% | 6.42% |
| Bharat Rasiklal Shah | Promoter | — | — |
| Pravinaben B. Shah | Promoter | — | — |
| Shubham Bharatbhai Shah | Promoter | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.